IHG signs Deal to Develop 12 Holiday Inn Express Hotels in Saudi Arabia

InterContinental Hotels Group has signed an exclusive franchise development agreement with Siraj Capital Ltd to develop the Holiday Inn Express brand in Saudi Arabia. A total of 12 new properties are set to open within five years.

The Saudi Arabian deal follows the official opening of the Dubai Internet City property in November. IHG is opening on average two Holiday Inn Express hotels every week around the world.

Siraj Capital is acting on behalf of Rahala LLC, a Saudi Arabian limited liability company, under formation, which will be the asset owner of Holiday Inn Express in Saudi Arabia. The deal was brokered by Hospitality Management Services (HMS), which will operate the individual properties.

John Bamsey, Chief Operating Officer, InterContinental Hotels Group, Middle East & Africa said, "We are currently witnessing a growing demand for limited service hotels in the Kingdom where budget-conscious travellers seeking satisfactory levels of amenities and service currently turn to more expensive accommodation options."

"With Holiday Inn Express we will address this issue by offering competitive pricing, quality accommodation and the assurance that an international brand brings. All hotels will provide the essentials such as a complimentary breakfast, a power shower, workstations and a great night's sleep" added Bamsey. "It is an ideal time to be investing in the bourgeoning Saudi Arabian market, where the tourism sector is expected to grow by 12.6% in 2007 and by 6.1% per year between 2008 and 2017."

In October 2007, IHG announced a worldwide re-launch of the Holiday Inn brand family, which comprises Holiday Inn, Express by Holiday Inn and Holiday Inn Express. All Holiday Inn hotels are required to implement the relaunch programme to create a more contemporary brand image, increase quality and drive consistency.

The relaunch will result in all Express by Holiday Inn hotels being known as Holiday Inn Express globally, as well a new service promise, a redesigned welcome experience and refreshed guestrooms.

See other recent news regarding: Travel News Asia, InterContinental Hotels Group, IHG, Saudi Arabia, Holiday Inn Express